JSW Energy Q1 net profit down 48%, revenue declines 3% to Rs 2,927 cr

Sajjan-Jindal promoted JSW Energy on Friday reported a 48 per cent decline in its consolidated net profit, owing to weakness in its hydro energy, short-term sales, and coal segments, along with charges related to debt-refinancing.

JSW Energy reported a net profit of Rs 289.88 crore, a 48 per cent decline on a year-on-year (YoY) basis at the consolidated level in the June quarter. The company attributed the dip to the drag from lower short-term sales, hydrology, and profits at international coal assets, and one-off charges due to debt refinancing at Mytrah, one of its new renewable energy assets.

JSW Energy said short-term sales were lower in the quarter under review due to an unfavourable base effect from the last financial year. JSW Energy said 50 per cent of FY23's total short-term volumes were reported in the first quarter of the year.

The power producer’s revenue from operations stood at Rs 2,927.85 crore. “During the quarter, total revenue decreased by 3 per cent (YoY) as the incremental revenue from Mytrah and renewable capacity additions was offset by lower realisation in thermal assets on account of decline in coal prices (which are pass through in nature),” the company said in a statement.

The company said the overall power generation in the quarter was up 14 per cent driven by newer renewable energy capacities. Earnings before interest, taxation, depreciation and amortization (Ebitda) was Rs 1,307 crore, up 18 per cent YoY.

Net debt stood at Rs 22,904 crore at the end of June 2023.

India’s power demand in the April-June 2023 period, the company said, increased one per cent to 409 billion units, as unseasonal rains in the north in April and May affected the country’s power consumption. JSW Energy guided for a healthy power sector outlook in the medium term as rapid urbanisation and stabilisation of various government schemes are expected to boost overall power demand.

In Friday’s trade, shares of JSW Energy closed at Rs 304.55 per share on the BSE, up 1.84 per cent, ahead of the results announcement, which came post market hours.